I have no idea what's happening as in the product (the answer is (a)) there is a new ring being formed on the left benzene. But as I studied after $\ce{H2O}$ leaves, a carbocation is then formed on stabilized by the right ring.
Can someone please explain the rest of the steps of this reaction? The thing I don't get is how does the three-membered ring opening happens. I attempted the question, but the answer that I came up with isn't the one matching in the book. Where did I go wrong with the mechanism?